Palmer seeks Monson water as backup for Mohegan Sun casino project including water park

PALMER - Palmer Water District No. 1 has an agreement in principle with Monson Water and Sewer Department to construct an interconnection between the two systems to provide extra water if the Mohegan Sun Massachusetts resort casino proposal becomes a reality.

Palmer Water District No. 1 Superintendent James M. Ammann met with the Monson Water & Sewer Commission last month about Monson providing a back-up water supply.

They have discussed creating an interconnection in the past, but neither town had enough money to do the work on its own.

This project would be paid for by the Connecticut-based Mohegan Tribal Gaming Authority as part of its nearly $1 billion casino project planned for Thorndike Street (Route 32), across from Massachusetts Turnpike exit 8.

"This is all contingent on the casino vote and who the state picks," Monson Water Superintendent Craig W. Jalbert said on Wednesday.

"It's just an agreement in principle, but it will definitely be a huge benefit to both towns to have the interconnection . . . They're proposing a very well thought out and well engineered interconnection," Jalbert said. "Palmer would be at a deficit for water production and we would help ease that deficit."

In addition to providing extra water to the casino, the interconnection would provide an emergency water supply to both towns, benefiting customers, Jalbert said.

Mohegan is competing for the casino license with MGM Resorts International in Springfield and Hard Rock International in West Springfield.

Minutes of a June meeting between the Monson commission and Ammann detail the discussion; the Palmer Water District has "adequate supply to feed" the casino project, but in doing so, its withdrawal permit would be maximized, creating concerns about demand. Ammann said the discussions with Monson "are part of our due diligence" to ensure that ratepayers will continue to get the same service if the casino opens.

Ammann has said that Palmer Water District No. 1 serves 4,700 customers, who use approximately 450,000 to 490,000 gallons of water a day. With that use, Ammann has said there is approximately 200,000 gallons a day of surplus water.

Mohegan's Paul I. Brody did not have a water usage number for the project immediately available on Wednesday.

But Brody said in 2011 that the project would use 250,000 gallons of water a day, not 700,000 as originally estimated. Since then, the project has changed to include a water park, which Ammann said he does not think will create a significant drain on the water supply.

A report issued by Beals & Thomas, one of Mohegan's consultants, stated that the estimated daily demand for the Palmer casino is 286,592 gallons of water per day. That breaks down to 178,867 gallons for the casino, 73,975 gallons for the hotels and conference facilities, 12,500 gallons for retail, 9,000 gallons for the cinema and 12,250 gallons for the water park and attached restaurant.

According to the Monson commission minutes, an agreed upon minimum usage of 1,050,000 gallons per month, or approximately 35,000 gallons a day, would be set for rate establishment and billing purposes. The water would be sold at Monson's current rate of $5.35 per 1,000 gallons. Under this formula, approximately $5,600 a month would be paid to Monson.

The minutes state that Monson lost a significant customer when the Monson Developmental Center closed, so Mohegan's usage would be a replacement and would not stress the wells. The 2012 water quality report stated that Monson Developmental Center used 11 to 12 million gallons annually.

Commissioner Joseph C. Prior expressed reservations regarding "the potential backlash from Monson residents who are anti-casino, although he agrees it makes sense for business, but would like to meet again to discuss the details," the minutes state.

In other developments, Mohegan announced Wednesday a new marketing program to benefit local businesses and tourist attractions throughout the region. Through this Player's Club program, guests would be able to receive additional discounts and redemption opportunities at participating local businesses and destinations in Western and central Massachusetts.

"Our goal is to have hundreds and hundreds of participants over time," Mohegan's chief executive Mitchell G. Etess said. "We want to let people know that this is out there."

As Mohegan has just unrolled this latest initiative, the company could not release names of participating businesses. Etess said they also hope that businesses contact them to be part of the program.

According to information from Mohegan, casinos typically have players club card programs which allow patrons to redeem rewards only at businesses inside the casino.

"The Mohegan Sun Player's Club card program will provide millions of dollars in discounts and rewards every year, and guests will be able to redeem points outside our resort casino to benefit the entire region," Etess stated. "This unique marketing program will enable us to further promote tourism and economic growth throughout Western and Central Mass. and directly drive business into the region."

Joint promotional opportunities will be available, such as the inclusion of participating businesses in Mohegan Sun Massachusetts advertising campaigns, along with employee discounts.

The marketing program will be subject to approval by the Gaming Commission, which will award the lone Western Massachusetts casino license.

The town of Palmer and Mohegan are continuing discussions on the host community agreement, which Town Manager Charles T. Blanchard expects will be completed within a few weeks.

"It's in the final stages of negotiation. I'm not certain exactly when it will be done . . . Things take time to get all the details," Blanchard said.

A referendum can be held 60 to 90 days after the host community agreement is signed. It is looking more likely that the citizens will have a chance to vote on it in October, rather than September, as was originally stated.

Meanwhile, Hard Rock Hotel & Casino New England will host a grand opening on Tuesday for its West Springfield campaign headquarters at 1425 Westfield St. (Route 20) as part of the effort to get voters to approve a casino in the Sept. 10 special election. The casino is proposed for 38 acres at the Eastern States Exposition fairgrounds.

The event will rally community support for the $800 million proposed project, according to Hard Rock. It will also launch the formation of “West Side Yes,” a group of local supporters of the casino project.

Brian Griffin, vice-president of the Town Council in West Springfield and chairman of the council’s Casino Mitigation Committee, said he has tried, without success thus far, to meet with MGM Resorts International regarding mitigation funds and traffic concerns.

“Two of the more serious concerns is the woefully underfunded mitigation account created by MGM and their parking and traffic plan which until now has been more of a mystery than a reality,” Griffin said in an email to Springfield City Council President James J. Ferrera III.